Westlake Corporation (WLK)
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
$74.79+0.25%
Close 2026-09-04 · 1-day change
NYSEMaterialsChemicals - SpecialtySnapshot 2026-09-04
Warn: Primary pillar under pressure — Sustain PVC pricing momentum to support EBITDA: PVC pricing momentum fading (qualitative) vs stable/improving target.
Westlake aims to improve profit by $600 million in 2026. It keeps paying a $0.53 dividend per share. The company just bought a vinyl business to grow. These moves could help earnings recover.
Profit fell $60 million in Q1 2026 versus last year. PVC prices are weakening, hurting earnings. The company is still losing money and faces lawsuits.
The price is about 36% below our fair value near $121. Analysts expect 7% revenue growth. Our view is cautious given profit misses and market stress.
Breaks if: Dividend per share falls below $0.50 in next 4 quarters
Breaks if: EBITDA improvement falls below $300 million in FY26
Breaks if: PVC pricing declines significantly next 4 quarters
Breaks if: Revenue falls below $4.4 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving earnings and expanding operations. The current thesis state is cautious, given recent volatility in management and financial performance.
The market appears to have priced in a stretched valuation compared to peers, with expectations that may not fully align with the company's recent performance. There is a low fragility tier, suggesting that the stock is not overly sensitive to immediate changes.
Management is on track to achieve significant EBITDA improvements, although recent financial performance has been neutral. The risk of missing earnings remains elevated, but the probability is relatively low at this time.
The thesis hinges on management's ability to meet their EBITDA targets and maintain dividend payments. Additionally, external factors such as inflation trends and the performance of sector bellwethers will be crucial in shaping future outcomes.
In the next 1 to 3 years, WLK's performance will depend on effective execution of management priorities and broader market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on WLK. However, regulatory scrutiny threatens operational efficiency and costs.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.